Articled Assisant
21 Points
Joined May 2011
Though the taxable event is manufacture as per charging sec.3 of CE act, 1944, the liability to pay arises only at the time of removal. This is confirmed by the apex court in the case of Vazir Sultan Tobacco Co. [1996 (83) ELT 3] & Wallace Flour Mills Co. Ltd. vs. CCE 11989 (44) ELT 599.
Since the taxable event is manufacture, as an accountant you should ensure that provision for excise duty is made in the books. This view is expressed by ICAIs guidance note on provisioning for excise duty.